If for whatever reason you have found yourself facing an IRS criminal investigation or in a civil investigation or audit that, in time, may result to a criminal investigation. It is surprisingly easy for a person to find oneself involved with this kind of IRS tax problem. Maybe you have been accused of tax evasion, or some other form of tax fraud. Some people were not even aware that anything had gone wrong until the IRS came looking for them.
A simple error, oversight, or your accountant’s malpractice may trigger an IRS criminal investigation. particularly, unreported income, a false statement, the use of an impermissible accounting or banking service, or declaring too many deductions are things that could start an audit, which could then rise to the level of an IRS criminal investigation process.
The IRS is the world’s most powerful collection agency, with great resources, and its Criminal Investigation Division (CID) is ruthless. Its goal is particular: to accomplish a thorough investigation of the taxpayer who has engaged in tax fraud so that he can be criminally prosecuted.
A criminal investigation differs from an audit. With an audit, the IRS aims at determining whether you have calculated your tax liability accurately. With a criminal investigation, the IRS seeks to mount a case against you so that the U.S. Attorney’s Office can prosecute you. The taxing system is based on fear. To uphold a proper level of fear the government needs to prosecute tax cheats on an ongoing basis.
The Process of IRS Criminal Investigation
The IRS criminal investigation process is serious business. The Criminal Investigation Division “CID” consists of federal agents (called “Special Agents”), who are highly trained financial investigators that carry a gun and wear a badge. Unlike the typical police department, CID conducts a very meticulous investigation, and which may last years while they interview your family, friends, co-workers, employees, and business associates, among others, to get proves as to the extent of the tax evasion or tax fraud that may have occurred.
A criminal tax violation conviction leads to serious end results, and in addition to monstrous fines, including the cost of prosecution and jail time, (Up to 5 years in jail for each count and ordinarily the government will not prosecute without being able to establish at least 3 counts) it could imply financial, personal, and social ruin. Compounding the situation is that often a taxpayer will not know when he is subject to an IRS criminal investigation until it is in its late stages at which time they definitely have made incriminating admissions if they were not represented by competent counsel.
Signs that You May Be Subject to an IRS Investigation:
● An IRS agent suddenly stops pursuing you after he has been asking you to pay your IRS tax debt, and now does not return your calls. The agent might be getting ready to refer your case to the CID to look into previous or current tax evasion or crimes you may have committed within the collection process. This could include making false statements, hiding income or assets.
● IRS agent has been auditing you and now withdraws for days or even weeks at a time. After a case is referred to the CID, both the Collection and Examination Divisions put things on “pause” because they do not want to put a successful criminal prosecution at risk. The IRS’s CID is extremely resourceful and careful. To put yourself in a better position against them, it is best to hire an experienced IRS tax attorney as early as you can where criminal tax exposure is apparent in your fact pattern, like where you know you cheated on the return that is under audit. This is true even if your case is only at the civil investigation stage.
● Your bank notifies you that your records have been summoned by the CID or subpoenaed by the U.S. Attorney’s Office. This is a definite sign you need an attorney.
● Your accountant is contacted by CID special agents, or has been subpoenaed to appear before a grand jury and informed to come along with your tax records. The case against you is escalating; you need an attorney!
● The IRS brings to your notice that one of your previous tax returns has been selected for audit. If your return contains an under- or over-statement of income or deductions, stop speaking with your accountant. As just stated, your conversations with him can be used against you if/when your investigation changes from “civil: to “criminal”. IRS agents are professionals at identifying tax fraud, and they swiftly refer likely criminal cases to the Criminal Investigation Division.
● An agent is totally interested in certain sensitive transactions, or has requested copies considerable amount of documents (not just asking to review your records).
● An agent asks questions about the intent of your transaction, instead of its form.
● A CID special agent contacts you by phone or shows up at your business without any prior notice and tries to draw out as much incriminating information from you as possible without the protection of counsel being present. This is a definite sign that you are under criminal investigation. Do not communicate with CID special agents even if you are convinced of your innocence. You have the right to say nothing and you should do so! This is an ambush technique used by the IRS, where they try to obtain as much information as possible before you “wise up” and get an attorney. Tell the special agent that you wish to say nothing further to him without legal representation, and that you would like to speak with your IRS tax lawyer.
While there are other indications of a criminal investigation is under way, if any of the above apply in your case, seek competent legal representation from an IRS criminal tax defense attorney immediately. Building a strong defense early in the investigation could be the determining factor to if your case will result in a conviction and time behind bars or simply be about money (additional tax, penalties and interest). If for whatever reason you have found yourself facing an IRS criminal investigation or in a civil investigation or audit that, in time, may result to a criminal investigation. It is surprisingly easy for a person to find oneself involved with this kind of IRS tax problem. Maybe you have been accused of tax evasion, or some other form of tax fraud. Some people were not even aware that anything had gone wrong until the IRS came looking for them.
A simple error, oversight, or your accountant’s malpractice may trigger an IRS criminal investigation. particularly, unreported income, a false statement, the use of an impermissible accounting or banking service, or declaring too many deductions are things that could start an audit, which could then rise to the level of an IRS criminal investigation process.
The IRS is the world’s most powerful collection agency, with great resources, and its Criminal Investigation Division (CID) is ruthless. Its goal is particular: to accomplish a thorough investigation of the taxpayer who has engaged in tax fraud so that he can be criminally prosecuted.
A criminal investigation differs from an audit. With an audit, the IRS aims at determining whether you have calculated your tax liability accurately. With a criminal investigation, the IRS seeks to mount a case against you so that the U.S. Attorney’s Office can prosecute you. The taxing system is based on fear. To uphold a proper level of fear the government needs to prosecute tax cheats on an ongoing basis.
The Process of IRS Criminal Investigation
The IRS criminal investigation process is serious business. The Criminal Investigation Division “CID” consists of federal agents (called “Special Agents”), who are highly trained financial investigators that carry a gun and wear a badge. Unlike the typical police department, CID conducts a very meticulous investigation, and which may last years while they interview your family, friends, co-workers, employees, and business associates, among others, to get proves as to the extent of the tax evasion or tax fraud that may have occurred.
A criminal tax violation conviction leads to serious end results, and in addition to monstrous fines, including the cost of prosecution and jail time, (Up to 5 years in jail for each count and ordinarily the government will not prosecute without being able to establish at least 3 counts) it could imply financial, personal, and social ruin. Compounding the situation is that often a taxpayer will not know when he is subject to an IRS criminal investigation until it is in its late stages at which time they definitely have made incriminating admissions if they were not represented by competent counsel.
Signs that You May Be Subject to an IRS Investigation:
● An IRS agent suddenly stops pursuing you after he has been asking you to pay your IRS tax debt, and now does not return your calls. The agent might be getting ready to refer your case to the CID to look into previous or current tax evasion or crimes you may have committed within the collection process. This could include making false statements, hiding income or assets.
● IRS agent has been auditing you and now withdraws for days or even weeks at a time. After a case is referred to the CID, both the Collection and Examination Divisions put things on “pause” because they do not want to put a successful criminal prosecution at risk. The IRS’s CID is extremely resourceful and careful. To put yourself in a better position against them, it is best to hire an experienced IRS tax attorney as early as you can where criminal tax exposure is apparent in your fact pattern, like where you know you cheated on the return that is under audit. This is true even if your case is only at the civil investigation stage.
● Your bank notifies you that your records have been summoned by the CID or subpoenaed by the U.S. Attorney’s Office. This is a definite sign you need an attorney.
● Your accountant is contacted by CID special agents, or has been subpoenaed to appear before a grand jury and informed to come along with your tax records. The case against you is escalating; you need an attorney!
● The IRS brings to your notice that one of your previous tax returns has been selected for audit. If your return contains an under- or over-statement of income or deductions, stop speaking with your accountant. As just stated, your conversations with him can be used against you if/when your investigation changes from “civil: to “criminal”. IRS agents are professionals at identifying tax fraud, and they swiftly refer likely criminal cases to the Criminal Investigation Division.
● An agent is totally interested in certain sensitive transactions, or has requested copies considerable amount of documents (not just asking to review your records).
● An agent asks questions about the intent of your transaction, instead of its form.
● A CID special agent contacts you by phone or shows up at your business without any prior notice and tries to draw out as much incriminating information from you as possible without the protection of counsel being present. This is a definite sign that you are under criminal investigation. Do not communicate with CID special agents even if you are convinced of your innocence. You have the right to say nothing and you should do so! This is an ambush technique used by the IRS, where they try to obtain as much information as possible before you “wise up” and get an attorney. Tell the special agent that you wish to say nothing further to him without legal representation, and that you would like to speak with your IRS tax lawyer.
While there are other indications of a criminal investigation is under way, if any of the above apply in your case, seek competent legal representation from an IRS criminal tax defense attorney immediately. Building a strong defense early in the investigation could be the determining factor to if your case will result in a conviction and time behind bars or simply be about money (additional tax, penalties and interest).